The National Competitiveness Council has said key actions must be taken to reduce costs in the Irish liability insurance market, including bringing personal injury award levels in line with other jurisdictions.
Business Editor
Public liability insurance premiums have increased by 15-20% on average over the past three years, new research by the Competition and Consumer Protection Commission (CCPC) has found.
Their market study also found that the reasons for the increases were not always clear and 70% of respondents said they did not think that the price rises were fair or justified.
The report also established that availability issues are primarily impacting certain sectors, such as community and sports groups.
A lack of independent public data as well as an absence of open access to claims history information may be acting as barriers to market entry and creating problems for policy makers trying to improve it, it also discovered.
Government Welcomes Study on Public Liability Insurance
The Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar TD, and Minister of State for Trade Promotion, Digital and Company Regulation Robert Troy TD, have today (Wednesday the 23rd of December), welcomed the publication of a study on public liability insurance carried out by the Competition and Consumer Protection Commission (CCPC) at the request of Government.
Last year, the Government requested the CCPC to conduct a study into the operation of the public liability insurance market in Ireland. The findings of the study, published today, have made recommendations, the vast majority of which have already been incorporated into the Government’s recently published Action Plan on Insurance Reform.
New Government Office Established to Promote Competition in the Insurance Market
The Government has established an Office in the Department of Finance to encourage greater competition in the Irish insurance sector. The Minister of State at the Department of Finance Seán Fleming TD chaired its first meeting this week to establish its terms of reference.
This Office will develop the Government s ambitious insurance competition reform programme. This will provide a more co-ordinated Government policy approach to market competition aimed at bringing down the cost of insurance premiums, including for motor and home policies. Minister Fleming will report on its work to the Cabinet Committee Sub-Group on Insurance Reform.